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CRAGG SURVEYING <br />Stephen B. Cragg PLS <br />• 1476 2900 Road <br />Hotchkiss, Colorado 81419 <br />Phone 970-872-2258 <br />Fax 970-872-3358 <br />November 27, 2000 <br />Bowie Resources Ltd <br />Bowie No 2 mine <br />Paonia, Co. 81428 <br />Attn. Basil Bear <br />RE: Bowie No. 2 Mine <br />Subsidence Survey <br />A subsidence monitoring survey network has been established by Cragg Surveying for the Bowie <br />Resources, Bowie No. 2 Mine. The survey is based on the existing survey control grid in place around <br />the Bowie No. 2 Mine surface facilities. The points for the subsidence survey network have been <br />established using a Trimble 4800 GPS survey system. This GPS survey has been calibrated to the <br />• existing survey control grid and then the survey has been extended to the north to cover the area where <br />the coal has been mined and will be mined in the future. <br />The subsidence survey network was started in May of 1999 with additional points added in August of <br />1999. The majority of the subsidence monitoring points area # 5 rebar, 24 to 30 inches in length, with a <br />2 inch aluminum survey cap. The caps are stamped: Cragg Surveying, LS 24944. The survey network <br />was surveyed again in September of 2000 with additional points established in November of 2000. <br />The following tables list the survey points with the coordinate data, northing, easting and elevation for <br />each point along with a table showing the relative shift in position from the 1999 survey to the 2000 <br />survey. Some of the points show small changes in position which may be due to inherent error in the <br />survey, while some of the points show noticeable shift in position resulting from subsidence due to the <br />mining. See the accompanying map which shows the surface topography, underground mining plan, and <br />the location of the subsidence points. <br />• <br />